Getting Your Home Back After a Property Tax Sale in New York

by ECL Writer
New York Small Estate Affidavit

Losing your home due to a property tax sale can be a traumatic experience. The thought of someone else owning your most prized possession can leave you feeling helpless and hopeless. However, all is not lost, and there are ways to get your home back. New York State provides several options for homeowners to redeem their property after a tax sale, but the process can be confusing and time-consuming. In this article, Eastcoastlaws.com will explore the steps you need to take to get your home back after a property tax sale in New York. Whether you’re a first-time homeowner or a seasoned pro, this comprehensive guide will provide the information you need to navigate the process and reclaim your property. From understanding the redemption period to navigating the legal process, we’ll cover all the essentials. So, if you’re ready to take back your home, read on and learn how to get your property back in your hands.

In New York, if you don’t pay your property taxes, the unpaid balance—which includes outstanding taxes, interest, penalties, and costs—becomes a lien on your house. The taxing body can then foreclose the lien in order to recover the unpaid sums. The court will make a default judgment against the property if you don’t submit an answer. (If you don’t answer the lawsuit, you lose immediately under a default judgment.) The property is then either sold at auction or simply transferred to the tax district.

You will have some time in New York to prevent a tax foreclosure on your home. You have the opportunity to “redeem” the home by paying off any past-due taxes and other debts during this period, which is known as the “redemption period.” If your tax district permits it, you might be able to engage in an installment plan to pay off your back taxes gradually. A motion to reopen the default judgment or a request to have the tax deed set aside may be filed if you lose your house due to tax foreclosure in rare instances.

The Right To Redeem Your New York Home In A Tax Foreclosure

The right to redeem your home in New York is a crucial part of the state’s property tax foreclosure process. This right allows homeowners who have lost their property due to a tax sale to reclaim it before the sale is finalized. In New York, the right to redeem lasts for a set period of time, which is typically two years from the date of the tax sale. If the homeowner can pay the amount owed to the taxing authority, including the taxes owed, fees, and interest, they can regain ownership of their property.

The tax foreclosure process in New York can be confusing and overwhelming, but it’s important to understand your rights as a homeowner. The first step in the process is to find out if your home has been sold at a tax sale. This information can be obtained from the county clerk’s office where the property is located. If your property has been sold, you will need to determine the amount owed, including taxes, fees, and interest, in order to redeem your property.

Once you have determined the amount owed, you will need to pay it in full to the taxing authority in order to redeem your property. It’s important to note that the right to redeem is only available during the redemption period, which is typically one year from the date of the tax sale. After the redemption period has passed, the sale is considered final, and the new owner will take possession of the property.

The process of redeeming your property can be complicated, and it’s important to understand the legal requirements and procedures. If you are unable to pay the amount owed, you may be able to negotiate a payment plan with the taxing authority. You may also be able to file a claim with the New York State Office of the State Comptroller for a refund of any overpayment made on your property taxes.

In some cases, you may be able to contest the tax sale or the amount owed. This can be done by challenging the accuracy of the assessment or by arguing that the tax sale was conducted in an illegal or unfair manner. If you choose to contest the tax sale, it’s important to seek the advice of an attorney or a legal aid organization, as the process can be complex and time-consuming.

If you are unable to redeem your property, it’s important to understand your rights as a tenant. If the new owner of your property wants to evict you, they must follow the proper legal procedures and give you adequate notice. In addition, you may be entitled to certain protections under the law, such as a relocation assistance program.

You Might Be Able To Pay Off Your Delinquent Taxes In Installments

If your tax district permits it, you might be able to engage in an installment plan to pay off your back taxes gradually. The agreement’s duration cannot exceed 36 months. A down payment is required, although it cannot exceed 25% of the qualified past-due taxes. (N.Y. Real Prop. Tax Law § 1184.)

You’re not eligible to enter into an installment agreement, though, if:

  • another delinquent tax lien is on your property (or on another property you own) and that lien isn’t eligible to be part of the agreement
  • you lost another property to a tax foreclosure within the past three years, or
  • you defaulted on a tax installment agreement in the past three years. (N.Y. Real Prop. Tax Law § 1184.)

Ways You Might Be Able To Get Your Home Back After A Tax Foreclosure

Losing your home due to a tax foreclosure can be a difficult and stressful experience. However, all is not lost, and there are several ways you might be able to get your home back. In this article, we will explore some of the most common ways to reclaim your property after a tax foreclosure.

  • Redemption Period: In many states, including New York, homeowners have a set period of time, known as the redemption period, to pay the amount owed and reclaim their property. The redemption period typically lasts for one year from the date of the tax sale. If you are able to pay the amount owed, including taxes, fees, and interest, during the redemption period, you can regain ownership of your property.
  • Negotiate a Payment Plan: If you are unable to pay the amount owed in full during the redemption period, you may be able to negotiate a payment plan with the taxing authority. This will allow you to pay the amount owed in installments over a set period of time.
  • Challenge the Tax Assessment: If you believe that the assessment of your property was incorrect, you may be able to challenge it. This can be done by contacting the assessor’s office and providing evidence to support your claim. If the assessment is found to be incorrect, the amount owed may be reduced, making it easier to redeem your property.
  • Contest the Tax Foreclosure: If you believe that the tax foreclosure was conducted in an illegal or unfair manner, you may be able to contest it. This can be done by contacting an attorney or a legal aid organization and filing a claim in court. The court will then review the case and determine if the tax foreclosure was conducted in a lawful manner.
  • Bankruptcy: If you are unable to pay the amount owed and unable to negotiate a payment plan or contest the tax foreclosure, you may be able to file for bankruptcy. Bankruptcy can provide a temporary reprieve from debt and allow you to reorganize your finances. If your home is protected under bankruptcy, you may be able to keep it.
  • Rent-to-Own: If you have been evicted from your home due to tax foreclosure, you may be able to enter into a rent-to-own agreement with the new owner. This will allow you to rent the property for a set period of time and eventually purchase it.
  • Relocation Assistance: If you have been evicted from your home due to tax foreclosure, you may be eligible for relocation assistance. This assistance may include financial support for moving expenses, temporary housing, and job training.

Help From A Local New York Lawyer

The regulations governing redemption, revisiting a default judgment, and setting aside a transaction in New York are intricate. You should speak with a lawyer, such as a foreclosure lawyer, real estate lawyer, or tax lawyer with experience in property tax cases, to learn the deadline for reclaiming your property in a New York tax foreclosure, as well as if you wish to reopen a default judgment or set aside a tax deed.

Does New York Have A Redemption Period?

Yes, New York does have a redemption period for homeowners facing tax foreclosure. The redemption period is typically one year from the date of the tax sale, during which time the homeowner can pay the amount owed, including taxes, fees, and interest, to regain ownership of the property. However, the specific details of the redemption period may vary depending on the location and the circumstances of the tax foreclosure. It’s recommended that homeowners facing tax foreclosure in New York consult with an attorney or a legal aid organization to understand their rights and options.

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